fair price on used '12 Tahoe LTZ

[49fleetline]

Hi...I'm in the market for a used "certified" 2012 Tahoe LTZ from a dealership. It appears to be in great shape with about 15k-miles remaining on the original factory warranty. The dealership is asking the low side of retail fair market value per KBB info. I realize dealerships are not in business to lose money, but nonetheless I don't want to pay more than I should and I don't want to insult the dealership and scoffed at with an unreasonable low low-ball offer. I want both of us to be happy happy happy.

Be that as it may, I'm guessing that even selling this Tahoe retail at the low end of fair market value the dealership will probably make some money...and that's fine by me...and it stands to reason that if they it sold it at the high end of the retail fair market value (which they could probably do with this particular Tahoe), their profit margin would be even better....even more so at a price that is above and beyond fair market value on this used Tahoe if a buyer is desperate enough to pay for it at that price.

I'm also going to guess that dealerships buy most if not all used vehicles at a wholesale price that's unknown to the retail buyer so it can be priced accordingly in the retail/re-sale to help it move and earn them a decent return ASAP.

My question is: How is the wholesale price determined on a used vehicle? I'd like to pay somewhere between wholesale and the minimum retail on the used market if possible. Or is the wholesale pricing info a super sacred and a well-guarded secret like the Colonel's and Coke's recipe? Or have I now inadvertently angered the dealership gods who will now strike me with multiple Chevy lightning bolts or crash a clapped-out rusty Chevette into me when I step out for even asking this question?

THANKS!

 

[49fleetline]

Lotsa views but no replies. Hmm. Then I'm going to guess that wholesale info is super secret squirrel stuff. Then how about this: What's a real-world fair price for a very clean 2012 Tahoe LTZ that averaged 15-16 thousand miles a year...no known issues, no crashes, no recalls, clean title? I'm looking at such a thing and I want to pull the trigger but I'd hate to realize later that I paid too much for it....especially with left-over 2014s out there and 2015s on the lots.

Thanks!

 

[felixgun]

I'd say around 32-35k.

 

[Shimmy23]

OP, whats your location?

Here in the PNW, '12 LTZ would be around 35k-38k maybe more.

 

[yates ™]

Why are you worried about wholesale pricing? What they paid could differ widely. Sometimes they do not make much profit depending on how the previous deal was done. Some dealers now a days post their prices pretty low with very little wiggle room to get the internet crowd. Throw out what ever price you want but if it is too low be prepared to lose the vehicle or walk from the deal until they come down, the best way I can see is that you will have a long back and forth to get your pricing.

 

[49fleetline]

I'm in SoCal San Diego area...yup it went long on the back and forth, but we all kept it respectful and somewhat light-hearted...could've done without the standard "I- don't-make-a-bunch-I-live-in-a-small-rental-we've-been-at-this-for-hours-do-we-have-a-deal?" pressure schtick by the closer lol...hey it's not my first rodeo and it's their chosen profession...comes with the territory when dealing with a customer who is not easily rolled over, right?...they need to choose their battles, I guess...in the end I walked away cuz although we got closer, we were still far apart...cuz in the end I pay the bills...we'll try another day IF that LTZ is still there.

 

[sooly]

Unfortunately for you the used vehicle market is starving for vehicles. Find the one that fits your budget. The days of huge negotiations are gone. When have you ever heard a dealer just letting a customer walk. They are there to move inventory and to keep their cash flowing by doing so, not huge profit margins. If you can't afford the vehicle why waste yours, the salesperson, and managers time. All you did was spend your time Not buying a vehicle that they won't have an issue selling, and they know that. And I understand your idea of next one mentality however, how much is your time worth?
Btw have you seen the price jump of the 15s. They are not bringing the used ones down since a cloth Yukon is now 50gs


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[Juniorss]

12 LTZs at auction with 40k are bringing high 30s low 40s. I would expect to pay low 40s for one.. My dad was offered 37k on trade for his LTZ with 42k on it.